Diesel Price Trend in Mumbai

Diesel Price Trend in Mumbai between October and December 2018:

1. This is a quarterly diesel price trend in Mumbai (October-December) created on the basis of diesel price movements.
2. Oil retailing enterprises, especially public sector companies, are required to make use of dynamic fuel pricing to offer the new fuel price.
3. The fuel was offered at a rate of Rs.79.70 a litre on the opening date of October. The price dropped to Rs.77.11 a litre by the end of the week 1.
4. Diesel rates in Mumbai, the financial capital of India, were up by almost Rs.2 per litre in the week 2, while they declined by 15 paise per litre in the week 3 of the same month.
5. In the week 4 also, there was a drop. Considering the opening date and closing date prices, oil selling companies reported a 3.03% fall in fuel rates in Mumbai for the first month of quarter.
6. Because of a revision in the central tax, the rate of a litre of diesel not only in Mumbai but also in various cities in Maharashtra was declined by over Rs.2.5.
7. Unlike the previous month, November has seen many variations triggered by the frequent changes in overseas factors - the exchange rate and the cost of crude oil per barrel.
8. The same price was offered on the 2nd, 3rd, 4th, 6th, 7th, 8th, 9th, 10th, 11th, 13th, 14th, 16th, 17th, 18th, 20th, 21st, 23rd, 24th and 25th of November respectively.
9. For the first two months, the lowest price stood at Rs.70.98 a litre whereas the highest price stood at Rs.79.95 a litre.
10. The rate in the fall of fuel rates in Mumbai has climbed to 8.25% from 3.03% in November as the price of a barrel of unrefined oil, petroleum, has fallen by over $15. On the other hand, the exchange rate's impact on fuel pricing was reported to be minimal.
11. For the first three days of December, changes were made. While the price remained constant at Rs.69.53 a litre on the 4th and 5th, it price dropped by 46 paise a litre on the 6th.
12. There were no changes in the week 2 of December. Towards the end of the month, prices were stable.
13. Since crude oil prices have declined by over $8 per barrel in December compared to the previous month, OMCs reported a 7% drop in the price of crude oil.
14. Like other cities in India, in Mumbai also, fuel price was decreased by Rs.12 a litre this quarter. This is a big change caused by a massive downfall in petroleum rates in the international market.
15. The lowest price booked on the 28th, while the highest price booked on the 1st of December 2018.
16. It is worth stating that the pricing of diesel is also influenced by domestic aspects, including the excise duty, the sales tax, the OMC expenses, the commission paid by OMCs, etc.

Diesel Price Trend in Mumbai between July and September 2018

Diesel Price Trend in July 2018 in Mumbai

1. The trend in diesel price is based on the price revision that will happen regularly. The prime determinants of diesel and petrol rates in Mumbai, the capital city of Maharashtra, include oil prices and the FX rate.
2. Both factors are equally influential. The higher the price of petroleum rate, the higher the fuel price and vice versa. The falling rupee will impact the fuel price to go up whereas the strengthening rupee shall affect the price to fall.
3. In June 2018, the cost of petroleum was $73.83 per barrel (average price) and has fallen to $73.47 per barrel in July 2018.
4. The USD's exchange rate against the domestic currency has increased to 68.52. At the beginning of the month, it was 68.47. Because of the weakened rupee, the oil marketing enterprises hiked the fuel rate by 0.76%.
5. Sometimes, the government may increase or decrease the excise duty according to circumstances. OMCs, which revise fuel prices, will ponder the value-added tax and sales tax for fuel pricing.
6. The highest diesel rate for the month was Rs.72.69 per litre whereas the lowest diesel price was Rs.71.49 per litre.

Diesel Rate Trend in August 2018 in Mumbai

1. In the first and last weeks of August, the price was increased marginally whereas in the second and fourth weeks, it was stable.
2. On 1 August 2018, OMCs sold diesel at a price of Rs.72.15 per litre and on 7 August 2018, the price increased by 60 paise per litre.
3. OMCs retailed diesel at a price of Rs.72.76 per litre in the week 2 and Rs.73.14 per litre in the week 3.
4. Likewise, diesel continued to retail at a price of Rs.73.49 on 24, 25 and 26 August 2018 in the city of Mumbai. In the last three days, oil companies increased the fuel price by 50 paise per litre.
5. Once again, the weakened rupee has caused a growth rate of 3.38% in Mumbai in August 2018. The cost of crude oil also fell.
6. The highest rate fell on the last day of the month because of the stability in the prices of diesel. Similarly, the lowest price was noticed on 1 August 2018.

Diesel Price Trend in September 2018 in Mumbai

1. The price paid by a fuel consumer includes the sales tax, which is levied by the State Government of Maharashtra, and the excise duty, which is levied by the Central Government.
2. If the Centre cuts the excise duty, the RSP has to be decreased. When the government increases the excise duty, the RSP has to be increased.
3. Over the last three months, the excise duty on a litre of diesel was constant. The sales tax was also constant.
4. The trend was completely decided on the basis of the transactional influencers: 1) crude oil rates and 2) the currency conversion ratio.
5. According to Petroleum Planning Analysis Cell, in September 2018, unrefined oil rates decreased by more than $5 per barrel.
6. The pace at which the INR devalued versus the USA's currency is higher this month compared to July and August. Thus, diesel price in Mumbai has accelerated by 6.20%.

Additional Information: The fuel sector in India is led by Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited. There are a few private players as well. Diesel price in Mumbai between July 2018 and September 2018 is a combined report produced using the reliable sources. There is no precise way to forecast the trend. Crude oil price is linked with several global aspects and even the FX rate is influenced by global economics.

Quarterly Diesel Price Trend in Mumbai between April and June 2018

Diesel Price Trend in Mumbai in April 2018

1. The price of diesel per litre shall be revised based on dynamic fuel pricing by Indian oil marketing companies such as Bharat Petroleum, Hindustan Petroleum and Indian Oil.
2. Dynamic fuel pricing was introduced to revise the price of diesel on a daily basis. It has been in place since June 2017.
3. On 1st, diesel price in Mumbai stood at Rs.68.77 a litre. Under dynamic fuel pricing, fuel companies have marketed the fuel at an average price of Rs.68.97 a litre during the first week of April.
4. Gradually, the fuel rate has increased to Rs.69.23 a litre on 14th. By the end of the third week, the fuel price was further soared to Rs.69.70 a litre in Mumbai, the capital city of Maharashtra.
5. Since the price of crude oil has increased, diesel rates in the metro city of Mumbai have increased to Rs.69.91 a litre on 22nd, Rs.70.05 a litre on 23rd, and Rs.70.24 a litre on 24th respectively.
6. The fuel was sold at Rs.70.20 a litre on 25th, 26th, 27th, 28th, 29th and 30th triggered by the unchanged overseas factors.

Diesel Price Trend in Mumbai in May 2018

1. The closing date price for the previous month turned out to be the opening date price for this month. At all the fuel stations, diesel price per litre remained unchanged at Rs.70.20 a litre on 1st, 2nd, 3rd, 4th, 5th, 6th,7th,8th, 9th,10th and 11th.
2. Fuel companies also take into account excise duty and Value-added Tax while determining the fuel rate. Neither excise duty nor Value-added Tax was revised in April and May.
3. So, it can be interpreted that an upsurge of 5.07% in diesel prices was triggered only by the increased crude oil expenses.
4. Since oil marketing companies borrow unrefined oil from oil-exporting countries such as OPEC, the currency conversion rate will impact the crude oil rate. The Indian currency has fallen minutely against the USD this month.
5. But, the revision of diesel rates in the capital city of Maharashtra was not affected by the exchange rate in this month.
6. Other domestic forces such as the OMC expenses, the commission for dealers, pollution cess and the profit margin of the OMCs were not changed.
7. In Mumbai, the highest diesel rate for the month stood at Rs.73.83 a litre on 29th whereas the lowest diesel price stood at Rs.70.20 a litre.

Diesel Price Trend in Mumbai in June 2018

1. June 2018 began with a downward trend in tandem with international influencers. The opening date price for this month was down by 5 paise per litre. By the completion of the first week, the fuel rate was slashed to Rs.73.21 a litre.
2. The fuel rate was further reduced to Rs.72.24 a litre on 14th and Rs.72.02 a litre on 21st because of the sluggish unrefined oil market but not because of other factors such as excise duty and Value-added Tax (VAT).
3. At Indian Oil Corporation Limited, the lowest and highest diesel rates in the city of Mumbai stood at Rs.71.49 a litre and Rs.73.71 a litre respectively.
4. In this month, all the state-run fuel companies such as Bharat Petroleum, Hindustan Petroleum and Indian Oil have decreased diesel rates by 3.01% as the oil-exporting countries have reduced the crude oil price per barrel.
5. Between April 2018 and June 2018, diesel price per litre in Mumbai has increased to Rs.71.49 a litre from Rs.68.77 a litre.

Trend in Diesel Price in Mumbai between January and March 2018

Trend in Diesel Price in Mumbai in January 2018

1. The base currency was down 0.24% to Rs.63.69 on 1, 0.35% to Rs.63.47 on 2nd, 0.04% to Rs.63.44 on 3rd, 0.05% to Rs.63.41 on 4th, and 0.1% to Rs.63.35 on 5th. A steady fall in the exchange rate affected the fuel price to increase.
2. So, the price as of the opening date soared to Rs.63.43 per litre. The growth rate for the first week stood at 1.02%.
3. In Mumbai, 24.86% Value-added Tax (VAT) and the excise duty of Rs.15.33 a litre were levied until the last day. They had no impact on the variations in the diesel price in the city.
4. The fuel rate increased to Rs.65.74 a litre on 15th because of a 1.76% hike in the crude oil's cost, Rs.66.91 a litre on 21st, and Rs.67.99 per litre on 28th in sync with the movements in the cost of WTI Crude and Brent Crude.
5. At 7.44%, a growing trend was announced at Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited for the whole month.
6. In Mumbai, the multi-year high was breached at Rs.68.15 a litre on 31st. A new high price was also offered in Delhi, Kolkata and Chennai.

Trend in Diesel Rate in Mumbai in February 2018

1. Irrespective of the declaration of the Union Budget, on 1st, the new price was offered under the daily revision system at Rs.68.25 per litre, which was up 10 paise per litre.
2. It is the steady demand for unrefined oil that caused a 0.17% rise in the fuel price on 7th. The OMCs booked the highest price at Rs.68.37 per litre within the first 6-7 days.
3. After 8th, the offer started reducing. The downward trend was observed until the third week, which concluded with an offer of Rs.66.32 per litre.
4. Once again, on 21st, diesel accumulated its value by 1 paisa. The fuel price travelled downwards until the end of the month.
5. On 22nd, the offer was down 1 paisa to Rs.66.32 per litre, 9 paise to Rs.66.23 per litre on 23rd, 5 paise to Rs.66.18 per litre on 24th, and 2 paise to Rs.66.16 per litre on 25th.
6. This steady fall was instigated by the cost of crude oil. A 5.53% globule in the Indian Basket average crude oil was reported by HPCL, BPCL and Indian Oil in February.

Trend in Diesel Price in Mumbai in March 2018

1. Like the first two months, the VAT and the central tax were retained unaffected by the State Government of Maharashtra and the Central Government of India.
2. Alternatively, a 3.36% increase was not caused by the domestic factors. The overseas factors such as the crude oil market and the Foreign Exchange market (FX market) had a reasonable impact on the diesel prices in Mumbai
3. In the first week, the USD/INR fell to Rs.64.89 and Rs.64.85 in the second week. Therefore, the fuel companies hiked the fuel rate to Rs.67.10 per litre on 7th, Rs.67.15 a litre on 23rd, Rs.67.91 per litre on 28th , and Rs.68.58 per litre on 31st.
4. For the month, the lowest and highest prices were declared at Rs.66.35 a litre and Rs.68.58 per litre respectively.
5. On the other hand, the lowest price for the quarter stood at Rs.64.43 per litre and the highest price for the quarter stood at Rs.68.59 per litre.
6. This quarter the diesel rate in Mumbai was up 8.11% since crude oil in global markets gained its price reasonably.

Note: India considers the aggregated price of WTI and Brent in order to revise the existing fuel rates. Over the last 10 months, the WTI and Brent prices have gone up 10-15%. Therefore, both the diesel and petrol prices accelerated considerably.